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Definition of Crowdfunding

Like many other things in life, funding is constantly changing

On the other hand, a concept that emerged in the eighteenth century is still current: Crowdfunding. Thus, with the internet, this methodology is even greatly facilitated these days.

But what exactly is the definition of crowdfunding?

First of all, crowdfunding, means literally “financing by the crowd.” Besides, in Quebec, we talk about socio-financing. In addition, in France, and the rest of Europe, we speak of participatory financing, a term that is ultimately rather vague.

In fact, it is a type of funding whereby a project bearer solicits the financial support of a large number of contributors through social media platforms, or an internet platform (WEB) in order to allow the implementation of a project or to support its development. Thus, crowdfunding is a form of collaborative economy in the same way as initiatives like Airbnb or Communauto, for instance.

But what exactly is the definition of crowdfunding?

Chiefly, this way of financing is expanding without the support of the traditional financing players. That is to say, it is disintermediated. Since banks are no longer the sole masters of funds and capital, a project can be realized freely. Moreover, the contribution can be made by individuals or companies. Regardless of the field of activity. However, the emergence of crowdfunding has been allowed through the internet and social media. Whereas, this trend of crowdfunding is part of a more global movement. Particularly, that of collaborative consumption and participatory production.

Human project – Pixabay photo credit

Therefore, in simple and effective terms. The definition of crowdfunding is a opportunity that involves giving a boost to many people to finance a project (creative or otherwise), and then to receive a blow from many people to finance my project.

For this reason, the premise of crowdfunding is based on the logic according to which small accumulated efforts can lead to major projects.

Therefore, crowdfunding brings together individuals for a human project, a collective adventure. Consequently, it is necessary to go beyond the financial aspect to see the importance and the scope of this approach.

In France, the expression participative financing is officially recommended by the French Language Enrichment Commission since 2013.

“There were no websites that would allow people to actually take action on a project, integrating social media, either you were making a donation or you were making a for-profit investment, there was nothing in between, which had this hybrid dimension and that underwriting spirit, then it was created.”Slava Rubin, founder of indiegogo in 2008

This summarizes the definition of crowdfunding. Now, thanks to CFI, I am ready to define my future with an outstanding team, Team Alain Lecompte CFI. CFI, the platform that offers me more for the realization of my project with crowdfunding in the world, the opportunity to realize my dream, come see the CFI opportunity.